US stocks dip after Dow tops 40,000 for first time

NEW YORK – Wall Street stocks finished modestly lower on May 16, retreating from a record run that included the Dow’s first ever rise above 40,000 points.

The Dow lingered above that level for hours before ending slightly lower.

“We had a big move yesterday in response to data that were friendly for the Fed,” said Mr Angelo Kourkafas, of Edward Jones.

“Today, there was this absence of any major catalyst,” he said.

“With stocks at all-time highs, I think taking a breather is healthy.”

The Dow Jones Industrial Average finished down 0.1 per cent at 39,869.38.

The broad-based S&P 500 slipped 0.2 per cent to 5,297.10, while the tech rich Nasdaq Composite Index dropped 0.3 per cent to 16,698.32.

All three indices finished at records on May 15, following data showing a cooling in US inflation that raised hopes of Federal Reserve interest rate cuts.

Among individual companies, Walmart shot up 7 per cent, after reporting better-than-expected profits as the retail giant pointed to gains from wealthier consumers.

But Deere & Company dropped 4.7 per cent as it projected broad-based 2024 sales declines in light of a tough operating environment in the farming economy.